Mumbai: Taxpayers are reminded that the last date to file their Income Tax Return (ITR) for the financial year 2024-25 is September 15, 2025. Experts are advising taxpayers to exercise caution while filing, particularly regarding dividend income.

Many investors notice discrepancies between the dividend amounts credited to their bank accounts and the figures shown in the Annual Information Statement (AIS) or Form 26AS. Ignoring these mismatches or entering incorrect information can trigger notices from the Income Tax Department.

All sources of income, including dividends from shares or mutual funds, must be accurately reported under ‘Income from Other Sources’ in the ITR. Dividend mismatches often occur because bank statements reflect net dividends (after TDS), while AIS and Form 26AS show gross dividends along with the TDS deducted. Additional confusion may arise if dividends are credited on holidays or into seldom-used accounts.

When filing ITR, taxpayers should report the gross dividend amount as declared by the company or mutual fund and record the TDS under the relevant schedule to claim credit. If a loan was taken to invest in shares or mutual funds, interest paid on the loan can be claimed as a deduction up to 20% of the dividend income. Other expenses, such as bank charges or commissions, are not deductible.

Accurate reporting ensures smooth ITR filing, timely refunds, and protection against potential tax notices or audits. The AIS provides a comprehensive summary of a taxpayer’s financial transactions, including salary, interest, dividends, rent, TDS/TCS, investments in shares and mutual funds, property transactions, foreign remittances, GST turnover, and tax payments, refunds, and demands.